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Competitive Strategies of a Non Profit Company: Cesvi
- 1. Università degli studi di Bergamo IL CASO CESVI Competitive strategies of a non-profit company Luca Confalonieri Mauro Giorgi Alessandro Gorbani Fabrizio Sartori
- 2. Cesvi ("cooperazione e sviluppo") is one of the biggest humanitarian organizations in Italy. Founded in Bergamo in 1985 and has about 30 offices all over the world. Cesvi provides assistance in emergency situations, helps refugees and flood victims, supports reconstruction after disasters, implements projects for sustainable development and environmental defence in poor countries. Source: Cesvi Interview Competitive strategies of a non-profit company
- 3. Competitive strategies of a non-profit company
- 4. Profit vs. Non-Profit customers Project/Product Profit Firms Income donors poor countries Non-Profit Fundraising Project/Product Firms deseases Competitive strategies of a non-profit company
- 5. Fundraising Tools Introduction Growth Maturity Decline Use Time Competitive strategies of a non-profit company
- 6. Cesvi & Mass Media Ads, Campaigns & Testimonials Source: Cesvi Website Competitive strategies of a non-profit company
- 7. Some data about Cesvi Commitment to key sectors Funds sources Private donors Government Emergency and post-emergency relief United Nations Health European Community International organizations Children & Young people 7%1% Other Food security 20% Social business Awarness raising 10% 18% Environment 22% 6% 11% 21% 33% 17% 19% 15% Worldwide commitment 2% 1% Africa 47% Asia 31% Fundraising Income/Cost Ratio 6% 4% South America 9% Europe Educational 6% Balkans 4% Costs Middle east 1& 9% Income Other 1% 47% 46% 54% 31% Source: 2009 annual report
- 8. Funds sources 100% 75% 50% 25% 0% Cesvi Telethon Unicef Medici senza frontiere Airc Lega del filo d’oro Save the Children Emergency Private donors Companies Institutions and associations Government Other Source: 2009 annual report Fundraising Efficiency Index 100% 75% 50% 25% 0% Cesvi Telethon Unicef Medici senza frontiere Airc Lega del filo d’oro Save the Children Emergency Income Charges & Costs Source: 2009 annual report Competitive strategies of a non-profit company
- 9. PEST Analysis Political Economic Fiscal benefits World recession hits Accurate annual non-profit even report needed more than other Unstable world scenarios firms Technological Social Quick change Great attention to the and lot of channels used to opportunities communicate Source: Team analysis Competitive strategies of a non-profit company
- 10. SWOT Analysis STRENGTHS WEAKNESSES • high reputation, strong connections with • poor branding the business world • economical crisis deeply reflects on • huge global experience in cooperation fundraising • excellent cost management and • low focusing on a non profit segment transparency affects the effectiveness of • skilled people communication OPPORTUNITIES THREATS • non profit sector is expanding • operative problems due to political instability of third world countries • social networks can revolutionize • serious impact of a change in fiscal regulation fundraising • the failure of a project can affect reputation • growing awareness that donations have • the persistence of the crisis or a future fiscal benefits recession can cause a dramatic fall in fund • media coverage of emergencies raised Source: Team analysis Competitive strategies of a non-profit company
- 11. Porter’s Substitutes - medium Five • • Low switching costs Differentiation in projects not well perceived by donors Forces Analysis Rivalry - high Customers - high • The number of firms in • the whole funds come from the industry: high Suppliers - medium donations • Brand identity: Very high • High concerning TLC & media for • It’s easier to increase the • Customers' switching fundraisig number of small donors than costs: almost zero • Low concerning projects supplies increase the amount • Product differentiation: medium-high New entrants - medium • Capital costs: low • Competencies needed: medium • Access to market: connections are needed • No special equipment needed • Product differentiations not perceived Source: Team analysis
- 12. Value Chain Analysis SUPPORT ACTIVITIES INFRASTRUCTURE No HR MANAGEMENT Recruitment Recruitment Margin Training Training Information system development Industry researches Purchase TECHNOLOGY website DEVELOPMENT Procedures for Well-known action testimonials Materials Transport Advertising spaces PROCUREMENT services Energy Fundraising office Collection and Project management Operational Advertising Product sales, acquisition of teams manufactured by information about Project On field Fundraising Cesvi's social needs of goods implementation management enterprises and services to develop a specific Management of Maintenance of project deliveries of relationships with PRIMARY goods and supply action areas and ACTIVITIES services to action local institutions areas even after the End of the project INBOUND OPERATIONS OUTBOUND COMMUNICATION SERVICES LOGISTICS LOGISTICS & MARKETING Source: Team analysis
- 13. Future Strategies Web & Fundraising ✓ Decrease fundraising costs and increase speed ✓ Increase visibility and reach different kind of donors ✓ Internationality fundraising projects Competitive strategies of a non-profit company
- 14. Future Strategies Web & Fundraising ✓ Decrease fundraising costs and increase speed ✓ Increase visibility and reach different kind of donors ✓ Internationality fundraising projects ✓ Less saturated channel Competitive strategies of a non-profit company
- 15. Future Strategies Brand Changed through time and still not incisive Competitors Mission perceived through the logo Competitive strategies of a non-profit company
- 16. Luca Confalonieri Mauro Giorgi Alessandro Gorbani Fabrizio Sartori THANK YOU. Competitive strategies of a non-profit company